Secure Trust BankPLC - Pre Close Trading Update
14/01/2022 07:00
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RNS Number : 4111Y Secure Trust Bank PLC 14 January 2022
PRESS RELEASE
Secure Trust Bank PLC
LEI: 213800CXIBLC2TMIGI76
14 January 2022
For embargoed release at 07.00 am
SECURE TRUST BANK PLC
Pre Close Trading Update
Record level of new business lending in the quarter
Secure Trust Bank PLC and its subsidiaries ("Secure Trust Bank", "STB", or the
"Group") today issues a pre close trading update(1) ahead of its annual
results announcements for the year ended 31 December 2021 scheduled for 24
March 2022.
New Business Lending
Total new business lending increased by 27.9% in the fourth quarter, to a
record £471.1m, which was 51.5% (£160.1m) higher than Q4 2020.
Record levels of new lending were achieved in each of Real Estate Finance,
Vehicle Finance and Retail Finance. In Real Estate Finance the performance
followed strong demand for the Group's green loan products. The performance of
the Consumer Businesses was driven by strong pre-Christmas trading in Retail
Finance and the continued benefit of expansion into broader market segments in
Vehicle Finance.
Core Net Loan Book (2)
The core net loan book grew strongly in the fourth quarter and by double
digits compared to Q4 2020. Growth in the quarter was higher than the run-rate
required to achieve the Group's medium term lending book growth target of a
15%+ compounded annual growth rate (CAGR).
David McCreadie, Chief Executive Officer:
"I am delighted that we delivered a strong increase in net lending during the
final quarter of 2021 with the run-rate of net loan book growth ahead of our
recently announced medium term target of 15%+ CAGR.
We achieved record levels of new business across a number of our businesses
and, as set out at our recent Capital Markets Day, are demonstrating that we
have considerable potential to scale further in the years ahead in attractive,
specialist lending markets. Growth opportunities include the recently launched
Personal Contract Purchase product in Vehicle Finance and our planned launch
into Digital Buy Now Pay Later, accelerated by the acquisition of AppToPay
announced in November 2021.
While we remain mindful of the continued impacts of the pandemic on the
macroeconomic environment, our performance has heightened our confidence in
delivering our growth ambitions as we continue our journey to become the most
trusted specialist lender in the UK.
I would like to thank all of our colleagues for their continued commitment in
helping our customers and supporting each other during 2021."
(1) The Q4 2021 information in this announcement is unaudited.
(2) Core excludes the Asset Finance and Consumer Mortgages loan books which
were each disposed of in July 2021.
Enquiries:
Secure Trust Bank PLC
David McCreadie, Chief Executive Officer
Rachel Lawrence, Chief Financial Officer
Tel: 0121 693 9100
Stifel Nicolaus Europe Limited (Joint Broker)
Robin Mann
Gareth Hunt
Stewart Wallace
Tel: 020 7710 7600
Canaccord Genuity Limited (Joint Broker)
Andrew Potts
Tel: 020 7523 8000
Forward looking statements
This document contains forward looking statements about the business, strategy
and plans of STB and its current objectives, targets and expectations relating
to its future financial condition and performance. Statements that are not
historical facts, including statements about STB's or management's beliefs and
expectations, are forward looking statements. By their nature, forward looking
statements involve risk and uncertainty because they relate to events and
depend on circumstances that will occur in the future. STB's actual future
results may differ materially from the results expressed or implied in these
forward looking statements as a result of a variety of factors. These
include UK domestic and global economic and business conditions, risks
concerning borrower credit quality, market related risks including interest
rate risk, inherent risks regarding market conditions and similar
contingencies outside STB's control, the COVID-19 pandemic, expected credit
losses in certain scenarios involving forward looking data, any adverse
experience in inherent operational risks, any unexpected developments in
regulation or regulatory, and other factors. The forward looking statements
contained in this document are made as of the date of this document, and
(except as required by law or regulation) STB undertakes no obligation to
update any of its forward looking statements.
About the Company
Secure Trust Bank is an established, well‐funded and capitalised UK retail
bank with a 70-year trading track record. Secure Trust Bank operates
principally from its head office in Solihull, West Midlands, and had 940
employees (full‐ time equivalent) as at 30 June 2021. The Group's
diversified lending portfolio currently focuses on two sectors:
(i) Business Finance through its Real Estate Finance and
Commercial Finance divisions,
(ii) Consumer Finance through its Vehicle Finance, Retail
Finance and Debt Management divisions.
Secure Trust Bank PLC is authorised by the Prudential Regulation Authority and
regulated by the Financial Conduct Authority and the Prudential Regulation
Authority.
Secure Trust Bank, PLC, One Arleston Way, Solihull, B90 4LH.
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